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Volkswagen Group China to invest over 4 billion Euro in 2020

Volkswagen Group China to invest over 4 billion Euro in
2020

● Next year’s share of investment for e-mobility increases to around 40%, paving the way for Volkswagen Group China’s NEV offensive
● In 2020, production starts in two factories purely designed for all-electric cars, electrifying the country and supporting the company’s major sustainability goal to become net carbon neutral
● Despite headwinds, Volkswagen Group China has increased its market share to 19.5% and is outperforming the Chinese market
● Dr. Stephan Wöllenstein: “Our continued investment is charting the right course. Though challenging times remain, we won’t slow down and will continue to excite customers with our strong brand portfolio and accelerating electrification.”

Beijing/Guangzhou, November 21, 2019 – On the eve of the 2019 Guangzhou Motor Show, Volkswagen Group China presented its milestone of cumulative sales of 42 million deliveries, while at the same time showcasing its vision for sustainable mobility, which is underlined with a higher investment in e-mobility. The company, together with its partners, plans to invest over 4 billion Euro next year, showing its commitment to the Chinese market, with around 40% of this investment going towards e-mobility. This will accelerate the Group’s electrification strategy, which will be strengthened next year through the start of production in two factories specifically designed for manufacturing all-electric cars.

“Today, almost every fifth car sold in China comes from the Volkswagen Group. In a challenging market environment, our strategies are paying off,” said Dr. Stephan Wöllenstein, CEO of Volkswagen Group China. “I am looking forward to 2020, when our local e-car production will significantly increase in scale. Success in e-mobility will be a key driver for reaching our sustainability target, becoming net carbon neutral by 2050.”

Investment demonstrates continued commitment to China market

The Volkswagen Group and its partners will invest over 4 billion Euro into the China market in the coming year. Due to the Group’s comprehensive e-mobility strategy, the amount spent on e-mobility will be increased to around 40 percent, in fields such as production, infrastructure, development or research for electric cars. In the next few years, the company generally foresees to spend more on new energy vehicles than on fuel cars. The investment in 2020 will also target Volkswagen Group China’s other goals, including further optimizing its model portfolio, developing new mobility solutions, as well as making advancements in smart cities and autonomous driving.

Outperforming the overall market in 2019

In 2019, Volkswagen Group China has continued to deliver a solid performance, with this year achieving total cumulative sales of over 42 million vehicles in the China market since first arriving in the country. By October, the Group has delivered 3.34 million vehicles and increased its market share to 19.5% in China. Despite headwinds in the market, Volkswagen Group China expects to continue to outperform the overall market and is confident in the long-term potential of the Chinese auto development.

Comprehensive E-Mobility Strategy

By the end of this year, Volkswagen Group China will already offer 14 NEVs, while the Group’s comprehensive NEV offensive will launch next year. In 2020, production of all-electric cars on Volkswagen’s Modular Electric Drive Platform (MEB) will start in two factories. One of these two factories, by SAIC VOLKSWAGEN in Anting, recently started pre-production 12 months after ground-breaking. Together with a plant by FAW-Volkswagen in Foshan, they will start MEB-production in October 2020 with a total capacity of 600,000 units per year. Overall, the Group will offer 30 locally produced NEVs by 2025, including achieving 1.5 million NEV sales by that point.

E-mobility is essential for developing sustainable mobility

Sustainability is a crucial driver of Volkswagen Group China’s strategy. The Volkswagen Group is committed to becoming a more sustainable automaker worldwide and in China, which includes becoming net carbon neutral by 2050. In order to support this, Volkswagen Group China has launched the “goTOzero” strategy in China. This initiative includes using fewer resources in production, increasing the share of NEV models in the Group’s portfolio to 35% by 2025 and increased effort in decarbonization by reducing the CO2 emissions of cars during the whole lifecycle. In 2020, the Volkswagen Group will launch its China-specific decarbonization index, providing transparency on the Group’s progress in achieving its fully carbon neutral goal by 2050.

Dr. Stephan Wöllenstein, CEO of Volkswagen Group China delivered the speech

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